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Ginger-Squash Cake with White Chocolate Frosting

['Nonstick vegetable oil spray', '1 cup all purpose flour', '1 teaspoon baking powder', '1 teaspoon ground cinnamon', '1/2 teaspoon ground ginger', '1/2 teaspoon salt', '1/4 teaspoon ground allspice', '1 cup finely shredded peeled butternut squash', '3/4 cup (packed) golden brown sugar', '1/3 cup unsalted butter, melted', '1 large egg', '2 tablespoons finely grated peeled fresh ginger', '1 1/4 teaspoons vanilla extract, divided', '3/4 cup chopped toasted hazelnuts (about 4 ounces), divided', '3 tablespoons whipping cream', '3 ounces high-quality white chocolate (such as Lindt or Perugina)']

Preheat oven to 350°F. Spray 9x9x2-inch metal baking pan with nonstick spray. Whisk flour and next 5 ingredients in medium bowl. Using electric mixer, beat squash, brown sugar, butter, egg, ginger, and 1 teaspoon vanilla in large bowl to blend. Fold in flour mixture and 1/2 cup hazelnuts. Transfer to pan, spreading to edges (layer will be thin). Bake cake until tester inserted into center comes out clean, about 30 minutes. Cool.
Bring cream just to boil in small saucepan over medium heat. Remove from heat. Add white chocolate and remaining 1/4 teaspoon vanilla; whisk until smooth. Let stand at room temperature until thick enough to spread, about 20 minutes. Spread over cake (layer will be thin). Sprinkle remaining 1/4 cup nuts over. DO AHEAD: Can be made 1 day ahead. Let stand at room temperature. Cut into 16 squares and serve.

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